In a major move towards its broader privatisation plan, the Reserve Bank of India has begun evaluating at least five potential bidders interested in picking up a majority stake in state-owned IDBI Bank, as per Reuters report.
As per Reuters, Kotak Mahindra Bank, Prem Watsa-backed CSB Bank and Emirates NBD are among those that have shown interest.
This stake sale would be the first major divestment across state-owned banks as part of a broader privatisation plan and could fetch the government $3.66 billion at the current market valuation.
The Union government and LIC together own 94.71% stake in the bank. The government owns 45.48% of IDBI Bank and is planning to divest a 30.48% stake in the bank.
Whereas insurance major Life Insurance Corp of India (LIC) plans to see a 30.24% of its stake from its holding of 49.24% in the bank.